Revenue Analysis:
Total and Operating Revenue: LSCC has shown a fluctuation in total revenue over the years, peaking at $192.169 million in Q3 2023 and then slightly decreasing to $140.815 million by Q1 2024. This pattern suggests seasonality or project-based revenue streams.
Gross Profit: Gross profit followed a similar trend, with a high of $134.561 million in Q3 2023 and dropping to $96.208 million in Q1 2024. The gross profit margin has remained relatively stable, indicating consistent pricing and cost management strategies.
Cost Management:
Cost of Revenue: The cost of revenue has seen increments, indicative of increasing production costs or scaling operations. Notably, the cost stood at $34.483 million in Q1 2024, down from a high of $57.608 million in Q3 2023.
Operating Expense: Operating expenses peaked in Q4 2023 at $79.603 million and were reduced to $77.930 million by Q1 2024. This suggests efforts in cost optimization despite scale.
Total Expenses: Total expenses generally increased through the period, highlighting ongoing investment or escalating costs in operations.
Profitability Analysis:
EBITDA: EBITDA has generally been strong, though it decreased from $68.832 million in Q3 2023 to $29.272 million by Q1 2024. This might hint at increasing operational costs or reduced operational efficiency.
Operating Income: Operating income shows a decline from $59.064 million in Q3 2023 to $18.278 million in Q1 2024, supporting the notion of increased cost pressures.
Pretax Income and Net Income: Pretax income mirrored the operating income trend. Net income has shown significant variance, from a high of $98.706 million in Q4 2023 to $14.796 million in Q1 2024, impacted by operational performance and possibly non-operating expenses or gains.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation expense has been fairly stable, reflecting consistent capital expenditure on assets.
Interest Expense: Interest expenses are noted in some quarters, indicating some level of debt financing used by the company.
Taxation:
Tax Rate: The effective tax rate fluctuated with changing pre-tax earnings and differing tax treatments, ranging from about 4% to 21%.
Tax Provision: Tax provisions have shown inconsistencies, such as a notable tax benefit in Q4 2023 which significantly impacted net income.
Tax Effect of Unusual Items: Negative impacts observed from unusual items were partially offset by their tax effects.
Shareholder Metrics:
Diluted and Basic EPS: Both EPS metrics showed variations consistent with net income changes, with the highest EPS recorded in Q4 2023 at $0.71 diluted and $0.72 basic.
Average Shares: The count of average shares showed slight increases indicating potential equity financing or stock-based compensation strategies.
Net Income Available to Common Stockholders: This metric has closely followed the net income figures, showing direct impacts of the company’s profitability on shareholders.
Conclusion:
LSCC has demonstrated strong revenue generation capabilities though with fluctuating profitability which might be due to scalability challenges in managing operating and unusual costs. The company’s steady investment in assets and prudent use of debt is notable. Going forward, focusing on cost efficiency and maintaining its revenue streams will be crucial. Observing seasonal variations will help in planning for resource allocation.
Appendices:
Supporting data tables and calculations used are based on the provided financial figures over the several periods analyzed.